Presidential Title, Inc. has extensive experience in handling the following types of 1031 Exchanges:
- Simultaneous Exchange
- Deferred Exchange
- Reverse Exchange
- Construction Exchange
- Reverse Construction Exchange
The Internal Revenue Code (Section 1031) ordinarily imposes a tax on any gain realized from the sale or transfer of real property. If a real estate investor adheres to strict IRS guidelines, that investor will be able to reinvest or defer the tax owed on all or a portion of the gain realized from the sale of relinquished property into a new replacement property. These deferred gains, as well as the gains from the new property, are not taxed until the new property is transferred without regard to the IRS specifications. 1031 Exchanges allow real estate investors an opportunity to increase their purchasing power by freeing up capital that would ordinarily be consumed by the capital gains tax, consolidate or diversify their real property portfolio, change property types or otherwise realize a better return on an investment.
There are many considerations that a real estate investor must take into account when contemplating a tax-deferred exchange. Presidential Title, Inc.’s experience and familiarity with the different types of 1031 Exchanges, coupled with its affiliation with Paley Rothman, a full-service law firm, allow Presidential Title, Inc. to settle these perplexing transactions in a prompt, cost-effective and professional manner.